4 Sep 2013
Flash: EUR/JPY primed for break higher? – ANZ
FXstreet.com (Lisbon) - The EUR/JPY tightening range of the past six months appears to be poised to break, suggests Tim Riddell, Head of Global Markets Research at ANZ.
Key quotes
“A future close above 132.75 could trigger a range flip higher (to 136.25) and further underscore the underlying uptrend in EUR/JPY, with potential for a retest of 2009’s 138.50-139.20 highs.”
However, “momentum indicators are neutral and price action remains inconclusive. Consequently, failure to close above 132.75, or a slip below 129.50 could trigger a slide to at least 128.00 or even 125.00. That should still be seen as forming a tight consolidation pattern and again underscore the longer-term uptrend in EUR/JPY.”
Key quotes
“A future close above 132.75 could trigger a range flip higher (to 136.25) and further underscore the underlying uptrend in EUR/JPY, with potential for a retest of 2009’s 138.50-139.20 highs.”
However, “momentum indicators are neutral and price action remains inconclusive. Consequently, failure to close above 132.75, or a slip below 129.50 could trigger a slide to at least 128.00 or even 125.00. That should still be seen as forming a tight consolidation pattern and again underscore the longer-term uptrend in EUR/JPY.”